Daily Archives: February 20, 2008

I wrote yesterday about the difficulties in getting customer satisfaction from state-run monopolies such as the Quebec liquor commission. Today I got a phone call from my local outlet’s supervisor that yes, they would replace the bottle of wine that had exploded in my hands….Hooray…I am blessed by good fortune (is there a pictogram for sarcasm?). The question remains…am I satisfied as a customer? Honestly, I would have to say “no”….it’s too little, too late. One of the principles that we teach to private companies that are trying to leverage service as a competitive advantage tool is that you have to, at the very least, meet the customer’s expectations. My expectation as a loyal (as if I had a choice) customer of the SAQ is that the bottle should have been exchanged by the first clerk I came in contact with on the very first day that I returned the broken bottle. Or, at the very least, by the Manager who subsequently met with me. Having to return three times to have the bottle replaced and being treated as if I were a scumbag who was trying to pull the wool over their eyes…that’s far from meeting my expectations. Now let’s do the math:

Cost of wine: $20;

Profit margin: $10 (conservatively);

Amount of money I spend at that store per year: App. $1000 (4-5 bottles of wine per month plus occasional spirits)

Profit Margin on my annual purchases: $500

Potential loss if I take my business across the border to Ontario (45 minutes away): $490

Wouldn’t any normal person take a $10 risk to save $500 in profit? Any sane person would. But the folks at monopolies, unguided by the viciousness of the free-market system, never do the math! Ultimately, its all about Ego and trying to prove that you have the power, not the customer. But as we always try to teach our corporate clients: “The customer is always right…even when he’s wrong!”